News broke late Monday following an Securities and Exchange Commission (SEC) filing, which revealed that Yahoo would shed several of its board members, including CEO Marissa Mayer, and change its name as Verizon moved forward with its $4.8 billion purchase of the internet company.
If finalized, the Yahoo-Verizon sale brings a lot of change to the tech company, essentially splitting it in two: Altaba (reportedly, a combination between “alternate” and “Alibaba,” of which Yahoo has a significant stake); and Verizon absorbing Yahoo’s core business and media sites.
Altaba will comprise of Yahoo’s approximately 15 percent or roughly $37 billion stake in digital retailer Alibaba, Yahoo Japan, some non-essential patents, and minority stakes in other companies. Altaba will exist primarily as an investment and holdings company. Verizon is buying Yahoo’s core business: Tumblr, advertising technology, media assets, email, messaging services, and its search engine.
The sale isn’t final, and Verizon still reserves the right to alter or cancel its plans. The wireless provider has previously expressed concerns over Yahoo’s cybersecurity problems, stating the internet company’s two massive breaches that affected more than 1 billion users could derail or change the terms of Verizon’s acquisition.
To make things clearer, here’s a graphic explaining what we know so far:
Also as a part of the shift, Mayer, Yahoo co-founder David Filo, Eddy Hartenstein, Richard Hill, Jane Shaw, and Maynard Webb will step down from the board of directors, according to the SEC filing. Mayer announced plans last year to stay on board with Yahoo following the Verizon acquisition. She hasn’t resigned as Yahoo’s CEO, despite some media reports implying otherwise.
Adam Peck contributed to this story.